QNET scam: Cops arrest prime accused behind notorious pyramid scheme
So far, testimonies from 163 victims revealed that their collective loss from the scheme amounts to Rs 3 crores.
By Newsmeter Network Published on 15 Aug 2023 12:17 PM GMT
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Hyderabad: The Central Crime Station (CCS) Police in Hyderabad have made a crucial arrest in the ongoing investigation into the QNET pyramid scheme case.
They have arrested Upendranadha Reddy (32), one of the prime accused behind the pyramid scheme disguised as a direct selling business.
So far, testimonies from 163 victims revealed that their collective loss from the scheme amounts to Rs 3 crores. Around, 35 bank accounts belonging to the accused and a firm named Vihaan Direct Selling Pvt. Ltd. have been frozen. Out of 15 accused, nine have been arrested so far.
The joint commissioner of police, Crimes and SIT, “The prime accused in the case are Rajesh Khanna and Ch. Upendranadha Reddy alias VC Upendranath Reddy. These individuals are alleged to have collected money from unemployed youth and innocent members of the public, promising high returns. They conducted motivation classes and lured victims in the name of e-commerce business, promising monthly returns ranging from Rs 20,000 to Rs 60,000, based on investments (registration fee) ranging from Rs 50,000 to Rs 1.5 lakh.”
“The accused individuals operated a pyramid scheme disguised as a direct selling business. Pyramid schemes are illegal in Telangana, and the government has issued direct guidelines prohibiting them,” said the joint commissioner.
QNET (Vihaan Direct Selling India Pvt. Ltd.) was in Swapnalok Complex in Secunderabad and was used for running a pyramid scheme in Hyderabad. Initially, four cases have been registered at Mahankali Police Station. Subsequently, as per the instructions of Addl CP, Crimes & SIT the case files were transferred to CCS, DD, Hyderabad for further investigation.
The CCS Police have urged the public to be cautious of schemes that promise high returns with minimal or no risk. They said that it is important to exercise caution and report any suspicious schemes to the nearest police station or appropriate authorities.
The cases are being investigated by assistant commissioner of police N Ashok Kumar and his team. They are being supervised by additional deputy commissioner of police G Srinivas and deputy commissioner of Police K Shilpavalli.
